(Bloomberg) -- Thai oil and gas firm PTT Pcl has picked financial advisers for a review of its downstream businesses as it seeks to run them more efficiently and boost their valuations, according to people with knowledge of the matter.
PTT is working with Bangkok Bank Pcl’s Bualuang Securities Pcl and UBS Group AG to help evaluate different deal options for the assets, said the people, asking not to be identified because the process is private. Options include merging some of the businesses or bringing in an equity partner to raise cash, the people said.
Considerations are preliminary and Bangkok-based PTT could decide against pursuing a transaction, the people said. Representatives for Bualuang and UBS declined to comment, while PTT didn’t respond to requests seeking comment.
PTT Chief Executive Officer Kongkrapan Intarajang said in August the company was seeking new partners to provide expertise and funding for some of its petrochemical and refinery units, adding that fierce competition and difficult market conditions were weighing on the industries. He also said unprofitable businesses would be divested to boost earnings, without elaborating. PTT Global Chemical Pcl, Thai Oil Pcl and IRPC Pcl are among the exchange-traded companies PTT is talking to potential investors about, the executive said. PTT owns about 45% in each of them. The group will retain controlling stakes, he said.
PTT shares have dropped 10% this year, giving the company a market value of about 914 billion baht ($26.9 billion). Shares in Global Chemical, Thai Oil and IRPC have lost around 30% each.
--With assistance from Anuchit Nguyen and Sing Yee Ong.
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